Payday Super: coming soon!

Most people know that from 1 July 2025, the minimum superannuation guarantee rate will increase to 12%. This is the last of the legislated incremental increases to the superannuation guarantee rate that commenced in July 2022, when superannuation rose from 10% to 10.5%. But are you aware of Payday Super?

On 2 May 2023 the Australian Government announced that from 1 July 2026, employers will be required to pay their employees’ super guarantee (SG) at the same time as their salary and wages.

On 18 September 2024, the government announced further details. This measure is not yet law.

Key changes include:

• Contributions of super: from the start of the measure, employers will be required to pay their employees’ SG at the same time as their salary and wages. They will be liable for the super guarantee charge (SGC) unless contributions are received by their employees’ superannuation fund within 7 days of payday.
• Definition of “payday”: payday is the date that an employer makes a qualifying earnings (QE) payment to an employee.
• Contributions deadline: contributions will need to arrive in employees’ super funds within 7 calendar days of payments of QE. QE is a new concept which includes ordinary time earnings (OTE), salary sacrifice super contributions and other amounts which are currently included in an employee’s salary or wages for super guarantee.
• Updated super guarantee charge: where employers fail to pay contributions in full and on time, they are liable for SGC
• SBSCH decommission: the Small Business Superannuation Clearing House (SBSCH) will be retired from 1 July 2026.
• STP updates: employers will be required to report in Single Touch Payroll (STP) both the OTE and the super liability for an employee, ensuring the SG can be correctly identified.

More information on the design of Payday Super is available in the Treasury fact sheet.

Bare Bones Consulting freely admits to not being experts in superannuation…that’s its own specialist field. But we can claim expertise in HR: based on experience and results for our clients. Whether you have an employment issue needing a solution right now or you’re just seeking the reassurance of an external HR provider when you need help, we’d like to think we’re right for you. Curious? Call us for a no-obligation chat or shoot us an email through our “Contact Us” portal and we’ll get right back to you.